Bandhan Mutual Fund on Monday, October 23, announced the launch of the Bandhan Nifty Alpha 50 Index Fund, an open-ended index scheme tracking Nifty Alpha 50 Index. The New Fund Offer (NFO) will open on Wednesday, October 25, 2023, and close on Monday, November 06, 2023.The scheme provides investors with an opportunity to invest in a well-diversified portfolio of stocks that generated high alpha (relatively higher returns than the market) over the last one year, the fund house said.

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The Nifty Alpha 50 index follows a structured, quantitative-led process of assigning weights to the securities based on alpha values, where the security with the highest alpha in the index is assigned the highest weight. This rule-based approach leaves no room for bias when making investment decisions. The alpha strategy adapts to the changing market conditions, leveraging compelling investment opportunities across segments, Bandhan Mutual Fund said in a release.

Investment in the Bandhan Nifty Alpha 50 Index Fund can be made through licensed mutual fund distributors and online platforms and directly at https://bandhanmutual.com/nfo/bandhan-nifty-alpha-50-index-fund/.

Highlighting the key reasons to consider the Nifty Alpha 50 Index strategy, Vishal Kapoor, CEO, Bandhan AMC said, “Traditional passive funds are designed to mimic their benchmark and thus offer broad market-based returns. Bandhan Nifty Alpha 50 Index Fund aims to generate outperformance by selecting stocks with specific factors that produce potentially higher risk-adjusted returns compared to the market. NSE data, as of September 30, 2023, indicate that the Nifty Alpha 50 Index has outperformed the Nifty 50 Index and the Nifty 500 Index, generating an alpha of ~5% over these broad-based indices, albeit with higher volatility. Savvy Investors seeking to add an aggressive strategy to their portfolio could include Bandhan Nifty Alpha 50 Index Fund, to enhance the growth potential of the portfolio.”

(Edited by : Anshul)

First Published:Oct 23, 2023 3:20 PM IST